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Home Breaking News

SHC seeks reply on petition filed by M/s Dysin Automobile Limited against imposition of value addition tax

byM.B. Rana
06/11/2020
in Breaking News, Karachi, Latest News
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KARACHI: The Sindh High Court (SHC) issued notices to customs officials and deputy attorney general directing them to file their parawise comments on a constitutional petition filed by M/s Dysin Automobile Limited against imposition of 3 percent minimum value addition tax through section 7A(2) read with the twelfth schedule of the act 1990 without lawful authority.

On 4 November 2020, counsel for petitioner stated that petitioner is engaged in manufacturing, assembling, marketing, distribution and sale of motor vehicles, related accessories and spare parts, petitioner has established its manufacturing/ assembly plant and for that purpose needs to import certain plants, machinery, equipments and other goods, further, for process of manufacturing. For assembly of vehicles, the petitioner needs to import automobile parts and equipment.

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Counsel further argued that petitioner imported goods, however, customs authorities imposed 3 percent minimum value addition tax through section 7A(2) read with the twelfth schedule of the act 1990 without lawful authority.

Citing secretary revenue division, chairman Federal Board of Revenue, Collector of Customs Muhammad Bin Qasim as respondents, petitioner pleaded the court to declare that the minimum value addition tax sought to be imposed through section 7A (2) read with the twelfth schedule of the act 1990 is ultra vires the scheme the act 1990 and the constitution and declare that the release of all goods imported by the petitioner is not subject to payment of 3 percent minimum value addition and respondents are required under the law to release goods imported by petitioner without the payment of 3 percent minimum value addition tax.

He further pleaded the court to permanently and pending disposal of petition restrain them from charging, collecting, demanding or withholding 3 percent minimum value addition tax as a pre-condition for release of goods imposed or to be imported by the petitioner.

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